Money Matters On the Money Calling Out Crypto Currency Not Chasing Millions Anymore

Wnce esteemed as the Black dollar’s cure for the wealth gap in America, cryptocurrency, with all its allure has many African American investors scrambling after suffering historic losses in 2022.

At the end of last year, Bitcoin dropped to its lowest level since July of 2021, bottoming out at $18,809. The digital currency lost more than 45 percent of its value, which marked its second largest decline since its emergence. Bloomberg reported that Bitcoin’s value had peaked at $65,000 in November of 2021.

Most popular cryptocurrency prices plummeted throughout 2022. One of the biggest meltdowns was crypto exchange giant FTX who declared bankruptcy and its billionaire founder, Sam Bankman, is now facing imprisonment for fraud. There was also the crash of the Luna crypto network, with an estimated $60 billion wipeout that reportedly shook the global digital currency market.

“Cryptocurrency has always been volatile,” says a Forbes economics expert. “But 2022 was a stomachchurning, roller-coaster ride for investors and major players in the market.”

According to a recent survey conducted by Harris Poll, twenty-three percent of African Americans own cryptocurrency, compared to 11% of white Americans and 17% of Hispanics. However, African Americans fall behind in educating themselves about bitcoin and the basics of financial literacy.

“Aside from the inherent risk involved with the crypto market, the subject itself can be convoluted and difficult to make sense of, let alone digested well enough to make financial decisions,” remarks Olayinka Odeniran, Founder and Chairwoman of Black Women Blockchain Council. “There's a lot of education that’s out there for individuals, but you’ve got to have the dedication of time to do that.”

Traditionally, people in Black and Brown communities are scammed and sold snake oil schemes to gain wealth and save money, leaving them unbanked.